Gov't panel unveils major revisions to audit standards.
The Business Accounting Council, a government advisory panel, on Friday unveiled major revisions to general audit standards to ensure that companies disclose crucial information, such as that which may lead to business failure, in a timely and appropriate manner.
It is the first time since 1991 that the council has recommended an overhaul of audit standards.
Under the new standards, certified public accountants (CPAs) are required to monitor and judge whether companies disclose key information in an appropriate manner and to put their comments in audit reports.
CPAs are also required to make the wording of audit reports as clear as possible in a way that follows internationally accepted standards.
The revisions were submitted to the government the same day and the Japanese Institute of Certified Public Accountants is expected to develop practical guidelines based on the new standards.
Following necessary legal changes, the new standards will likely be applied to earnings reports for the fiscal year to March 2003, government officials said.
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|Publication:||Japan Policy & Politics|
|Date:||Jan 28, 2002|
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